Italy’s economy could still hit growth of as much as 1.4% in 2023 as tourism helps to counter manufacturing weakness, according to finance minister Giancarlo Giorgetti.

“We’re continuing to be optimistic, and we’re continuing to believe in our capacity to astound international observers,” he said during the Italy Capital Markets Forum in Milan on Monday, citing his growth target of between 1.2% and 1.4%. “I believe we can achieve the numbers I’ve just mentioned.”

The finance minister’s forecast surpasses the 1% growth prediction cited in the budget and echoed by the central bank last week, Bloomberg reports, showing how Italy’s economy has fared better than forecast.

“What we’re certainly expecting is a slowdown in the industry because that’s very closely tied to trends in the German economy. However, services, in particular tourism, in our view, will compensate for this weakness in manufacturing,” the finance minister stated

Q1 growth was upwardly revised over the past few days, revealing a 0.6% rise over the previous quarter. 

Nevertheless, another report revealed inflation didn’t slow down as much as forecast last month, declining to just 8.1%, surpassing economists’ predictions of 7.5%.

Enhanced growth prospects could help Italy lower its debt, the Bloomberg report goes on to say, which is still over 140% of output and, according to European Commission forecasts, will likely experience little change over the next year.

Giorgetti added that Italy’s government is aiming to be “prudent” with public finances and has no current plans to increase the deficit. 

Rating agency Moody’s Investors Service opted not to issue a new assessment of Italy’s economy in May but maintained its Baa3 rating with a negative outlook.